More than 261,000 Californians are about to receive an unexpected letter carrying something many thought would never come: freedom from overwhelming medical debt.
A transformative gift from Snap CEO Evan Spiegel and entrepreneur Miranda Kerr will erase more than $550 million in medical debt through the nonprofit Undue Medical Debt, bringing life-changing relief to families across California. The nonprofit announced the debt forgiveness June 25, with notification letters expected to begin arriving in mailboxes in mid-July.
Rather than paying off bills one family at a time, Spiegel and Kerr partnered with Undue Medical Debt, an organization that purchases qualifying medical debt from hospitals and collection agencies for pennies on the dollar before permanently eliminating it. Because of that unique model, every donated dollar stretches dramatically further, allowing one act of generosity to ripple across entire communities.Â
Recipients don’t need to apply, fill out paperwork, or repay anything. Those selected qualify because their incomes are at or below 400% of the federal poverty level or because their medical debt exceeds 5% of their annual income. For them, the relief simply arrives—unexpected, unconditional, and complete.
The impact will be felt statewide, with San Diego County seeing nearly $99 million in debt erased for more than 40,000 residents. Riverside, San Bernardino, San Joaquin, Los Angeles, Stanislaus, Monterey, San Francisco, Sonoma and Alameda counties are also among the largest beneficiaries.
“When someone is sick or recovering, the focus should be on healing and caring for the people you love, not on bills that can follow a family for years,” Spiegel and Kerr said in a statement released by Undue Medical Debt. “We hope this relief gives families more peace of mind and more room to prioritize their health, their loved ones, and their future.”
The Heartitude Lens
Sometimes the greatest gift isn’t something we hand directly to another person—it’s removing a burden they’ve been carrying alone. Most of the families receiving these letters will never shake Evan Spiegel’s hand or thank Miranda Kerr in person. Yet they’ll experience something just as meaningful: the feeling that someone they never met cared enough to give them a fresh start. That’s Heartitude in action—leading with compassion, lifting invisible burdens, and reminding people that hope often arrives in the most unexpected envelope.
Medical debt remains one of the leading financial challenges facing American families, often forcing impossible choices between healthcare and everyday necessities. Allison Sesso, president and CEO of Undue Medical Debt, called the donation “truly astonishing,” saying it unburdens more than a quarter-million families while addressing a crisis that affects healthcare access, economic well-being and mental health.
For Spiegel and Kerr, the effort continues a pattern of quiet philanthropy. In recent years, the couple helped eliminate student loan debt for graduates of Otis College of Art and Design and have supported wildfire recovery efforts across Los Angeles. This latest gift may be their most far-reaching yet—not because of its dollar amount, but because of the renewed hope it delivers to hundreds of thousands of people.
As thousands of envelopes begin arriving this summer, they’ll carry more than a notice of canceled debt. They’ll carry a reminder that compassion has the power to rewrite someone’s future.